Company Cross-Border Transfer Rules Must End ‘Regime Shopping’

he ETUC has uncovered many examples of abuse of company mobility rules. For example, in the meat-processing sector, work was sub-contracted to Eastern European letter-box companies employing low-paid workers on short contracts. The complexity of such arrangements makes it hard for inspectors with limited resources to follow the trail of responsibility. People work up to 20 hours a day, with no sick pay, overtime compensation or health insurance.

In the construction sector, a Polish-registered company with one room and a shared phone number in Gdansk posted workers to Sweden, where local staff were sacked. The posted workers experienced long hours, bad housing, and non-payment of wages. The company paid no social security contributions in either country, while at the same time deducting charges from workers’ salaries.

via Company Cross-Border Transfer Rules Must End ‘Regime Shopping’

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